Please help with this question not use chatgpt Cosmo contributed land with a fair market value of$365,000 and a tax basis of $99,000 to the YMountain partnership in exchange for a 30 percentprofits and capital interest in the partnership. Theland is secured by $161,000 of nonrecourse debt.Other than this nonrecourse debt, Y Mountainpartnership does not have any debt.a. How much gain will Cosmo recognize from thecontribution?b. What is Cosmo's tax basis in his partnershipinterest?

A) Cosmo has no gain to be recognized from the distribution of land to Y mountain partnership. This…

Answered: Cosmo contributed land with a fair…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 16MCQ

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Cosmo contributed land with a fair market value of $470,000 and a tax basis of $115,300 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $145,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will Cosmo recognize from the contribution? Gain recognized
Cosmo contributed land with a fair market value of $365,000 and a tax basis of $99,000 to the Y Mountain partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by $161,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. a. How much gain will Cosmo recognize from the contribution? (Leave no answer blank. Enter zero if applicable.) b. What is Cosmo’s tax basis in his partnership interest?
Cosmo contributed land with a fair market value of $470,000 and a tax basis of $115,300 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $145,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) b. What is Cosmo’s tax basis in his partnership interest? Tax basis
Joseph contributed $22,000 in cash and equipment with a tax basis of $5,000 and a fair market value of $11,000 to Berry Hill Partnership in exchange for a partnership interest. a. What is Joseph’s tax basis in his partnership interest? b. What is Berry Hill’s basis in the equipment?
When Nasa Properties LLC was formed, Nova contributed land (valye of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both partners received a 50% interest in partnership profits and capital. -a. How is the land recorded for §704(b) book capital account purpose? -b. What is Nasa’s tax basis in the land? -c. If Nasa sells the land several year later for $300,000, how much tax gain will Nova and Oscar report?
! Required information [The following information applies to the questions displayed below.] Cosmo contributed land with a fair market value of $365,000 and a tax basis of $99,000 to the Y Mountain partnership in exchange for a 30 percent profits and capital Interest in the partnership. The land is secured by a $161,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank. Enter zero if applicable.) b. What is Cosmo's tax basis in his partnership interest? Answer is complete but not entirely correct. Tax basis 20,110 X
. During the formation of Matt partnership, Tom contributed property with an adjusted basis of $140,000 in exchange for a 25% interest in Matt. The fair market value of the contributed property was $175,000 and the property was encumbered by nonrecourse debt with a balance of $130,000. What amount of gain should Tom recognize from contributing property to the Weaver partnership?
Visno
Cosmo contributed land with a fair market value of $387,500 and a tax basis of $94,500 to the Y Mountain partnership in exchange for a 25 percent profits and capital interest in the partnership. The land is secured by a $133,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank. Enter zero if applicable.) b. What is Cosmo's tax basis in his partnership interest? Tax basis
William, Xavier and Zelda formed WXZ Partnership. William contributed land with a fair market value of $50,000 (basis of $10,000) in exchange for a 50% interest (capital and profits/losses). Zelda contributed services worth $30,000 in exchange for a 40% profit interest (profit interest only; no capital interest). Xavier owns the remaining interest in the partnership. What is WXZ’s inside basis in the land immediately after the contribution?
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain Partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by a $142,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain Partnership does not have any liability. b. What is Cosmo's tax basis in his partnership interest?

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